Consumer Credit Slips Further in July

Consumer credit outstanding declined again, albeit at a slower pace in July, according to the Federal Reserve's monthly Consumer Credit Report, also known as the G.19 Release.

The total amount of consumer credit outstanding decreased at an annual rate of 0.7 percent to $2.419 trillion, according to the August 6 report. Revolving credit saw a more marked decline, falling at a 6.5 percent annual rate to $827 billion.

The total amount of nonrevolving credit outstanding increased for the second consecutive month in July. Nonrevolving credit, which includes auto loans and other financing not included in the revolving category, increased at a 2.5 percent annual rate, to nearly $1.6 trillion.

The release, which also tracks key information on car loans, reported that auto finance companies offered more favorable terms on lending in July. The average interest rate on new car loans fell to 4.02 percent, while the average maturity was slightly longer, at 63.1 months.